Exxon Mobil's Q4 earnings hit $5.7bn on Norway gains
LONDON, February 1, 2020
Exxon Mobil, one of the world's largest publicly traded international oil and gas companies, has announced estimated fourth quarter 2019 earnings of $5.7 billion, or $1.33 per share assuming dilution.
Unveiling the Q4 results, Exxon Mobil said the earnings included favorable identified items of about $3.9 billion, or $0.92 per share assuming dilution, mainly a $3.7 billion gain from the Norway upstream divestment.
Capital and exploration expenditures were $8.5 billion, including key investments in the Permian Basin.
Oil-equivalent production was in line with the fourth quarter of 2018, at 4 million barrels per day, with a 4 per cent increase in liquids offset by a 5 per cent decrease in gas, stated the global oil giant in its statement.
Excluding entitlement effects and divestments, liquids production increased two per cent driven by Permian Basin growth, while natural gas volumes decreased 4 per cent, it added.
On the results, Chairman and CEO Darren W. Woods said: "Our operations performed well, while short-term supply length in the downstream and chemicals businesses impacted margins and financial results."
“Growth in demand for the products that underpin our businesses remains strong. We remain focused on improving our base businesses, driving efficiencies, and optimizing the value of our investment portfolio,” he stated.
According to him, ExxonMobil started oil production from the Liza field offshore Guyana, less than five years after the first discovery of hydrocarbons – well ahead of industry average.
Gross production from the Liza Phase 1 development, located in the Stabroek block, is expected to reach capacity of 120,000 gross barrels of oil per day in coming months, he noted.
A second floating production, storage and offloading vessel (FPSO), with production capacity up to 220,000 gross barrels of oil per day, is under construction to support the Liza Phase 2 development.
During the quarter, the company also announced its 15th discovery on the Stabroek block, at the Mako-1 well southeast of the Liza field.
Inclusive of other recent discoveries, the estimated recoverable resource offshore Guyana now exceeds 8 billion gross oil-equivalent barrels, remarked Woods.
ExxonMobil anticipates that by 2025 at least five FPSOs will be producing more than 750,000 gross barrels of oil per day, he added.-TradeArabia News Service
